A16z, Polychain Invest $25 Million in Crypto Payments Startup Celo
Andreessen Horowitz’s cryptocurrency fund A16z Crypto and venture capital firm Polychain Capital have invested $25 million in cryptocurrency payments startup Celo.
Celo announced Tuesday that the two investors have purchased $15 million and $10 million in the project’s Celo Gold tokens, respectively.
The token-based funding effort also saw participation from “several other leading institutions” from across the world, Celo said, with the amounts not being disclosed.
Celo’s protocol is designed to be mobile-friendly and “ultralight,” allowing funds to be sent to cellphone numbers. The Celo Gold token it describes as a “deflationary” cryptocurrency that cuts down on price volatility. The startup also offers another token, the Celo Dollar, which is a stablecoin pegged to the U.S. dollar.
On the business level, it aims to enable easier remittances, cash-transfer programs and micropayments through its open-source platform, taking an initial focus on helping unbanked or underbanked people.
The firm said:
“We strongly believe that anyone, regardless of their location or socio-economic status, should have access to basic financial tools for storing and transmitting currency.”